The End of Medicare, Medicaid and Social Security

August 14, 2010

Courtesy Third Palmetto Republic

(Editor’s Note: ALL states will eventually deal with this thorny issue.)

Medicare, Medicaid and Social Security are the major components of the “safety net” which was put in place by the federal government for the supposed reason that Americans are too stupid to plan for their own retirement and health care. These programs are socialist institutions that rob property from all Americans and distribute it according to the federal government’s whims. They all started with the promise that the government would take a percentage of everyone’s income and stash it away in a safe account, and would only pull from that account to pay out benefits of these programs. However that promise was quickly broken, the money was spent, and the programs have since been funded by inter-generational theft. In other words, a Ponzi-scheme of epic proportions. The people who are working for a living now are paying the current bills for the people who are retired. This is exactly the same scam that Bernie Madoff was pulling, except that the amounts are in the Trillions instead of in the Millions, and we are all forced to participate unwillingly. At least Madoff’s investors had a choice.

No Ponzi-scheme is sustainable, just as no socialist program is sustainable, and so what we are facing now is the inevitable end of these social programs as they bankrupt the United States government, as the following chart illustrates:

What you can see here is that the amount of government spending on these programs (green, blue, light blue) has become the largest chunk of the federal budget, equal to the total amount of all of the other government programs. What’s worse is that the government is doing nothing to reduce its debt, and in fact these programs are adding to the debt, so the interest owed (red) is ballooning out of control. This graph shows this trend proceeding out to 2080, but the fact of reality is that investors are not dumb, and they will not continue to invest in the US government if nothing is done to change these trends. Countries like China who buy US Debt as well as individuals who buy US Bonds won’t continue to do so forever, especially in light of their current policies. Long story short, all Americans are headed for a train wreck thanks to the actions of the federal government.

If there’s one thing the federal government loves it is power, and so they are taking measures to try and delay this catastrophe. One such proposed measure is to raise the legal age of retirement so that the feds can delay paying out the benefits owed to those folks who have been robbed their entire lives. (Notice I don’t say they have paid into the programs: you don’t pay the government, the government takes your money. It isn’t voluntary, therefore it is theft.) A neat little feature of this system the feds have put in place is that every year the retirement age increases automatically by two months, but apparently that isn’t fast enough for our current high-spending politicians, so it has been proposed that the age be raised to 73. Meanwhile, the average life expectancy of an African American man is 70 years, and about a third of South Carolina’s population is African American.

The conclusion that we can draw from all of this is a tragic one, but it is one that we as South Carolinians have to face. Socialism has consequences: Social Security, Medicare, and Medicaid are coming to an end, and the United States Federal Government is going bankrupt. If we do nothing but try and vote in new representatives, we will be caught on that sinking ship as they destroy every remaining bit of freedom and prosperity that we enjoy. The feds have the use of force on their side and the ability to print money out of thin air, so when they go down it won’t be like an individual going bankrupt, where they just lose everything and start over. No, they will try everything possible to prop up their image of legitimacy including printing more and more money (causing rapid inflation), starting wars, stealing more property from Americans, and defaulting on promises they have made in the past, including the “safety net.” All of that money that has been taken from us over the years is gone, and just like with any robbery it is very unlikely that we’ll get any of it back.

So what could we do as a free South Carolina to compensate those who have had so much of their money placed into these programs through the years? If we are successful in reclaiming our independence, what will happen to all of those folks who are expecting to get something back out of medicare, medicaid, and social security?

First of all, and most importantly: we as South Carolinians will be able to make this decision for ourselves. Instead of sending a few representatives to Washington, DC to be outnumbered by the populous states, we will be able to solve these problems ourselves through our State government.

Let’s consider a few possibilities:

* South Carolinians decide to simply end Social Security, Medicare, and Medicaid.
This solution is the most improbable, but it deserves some discussion. People who have been robbed all their lives to pay for these programs would lose all of that money, so it would probably be a very unpopular solution. (note that they will also lose all of that money when the US goes bankrupt if we don’t secede.) However, the economic prosperity that would come from the lack of taxes and debt required to pay for these programs might be worth it, along with the moral clarity of not using younger folks as slaves to pay for benefits.
* South Carolinians decide to phase out Social Security, Medicare, and Medicaid.
We could devise an interim solution consisting of two parts: an age cutoff and a temporary funding source. The age cutoff would be a number such that anyone younger than that number would not receive any benefits. It could be set at 40, 45, 50, etc, depending on how long we want to have this crushing debt burden and how many people are willing to give up the benefits. The funding source could be one of many things: the state could sell off land, the state could run a lottery system, people could voluntarily donate to the funds, there could be a temporary sales tax, etc. This interim solution will need to be worked out by the representatives of the people, but it is probably our best hope at taking care of our seniors and avoiding catastrophe.
* South Carolinians decide to continue Social Security, Medicare, and Medicaid.
A third possible solution would be that in a free South Carolina the people decide to keep the existing programs as they are. While I personally would hate to see this happen because of the nature of socialism, it is a possibility. An independent South Carolina wouldn’t have to pay for things like hundreds of military bases and hundreds of thousands of troops around the globe (as the US government does,) so the people could decide to keep the payroll taxes and keep the social programs. I believe this is the worst option because it would lead to high taxes and runaway debt just like we have with feds.

In summary, the “safety net” of the federal government is quickly turning into a death trap that is sucking our economy dry and eroding all of our liberties. Along with these unfunded liabilities, the most populous states are going bankrupt and getting federal bailouts, yet not changing any of their policies. The federal government is creating money out of thin air to pay for all of these things, but that simply cannot go on forever. The longer we wait as South Carolinians to reclaim our own independence, the worse things are going to get. If we want to restore our liberty we are going to have to make sacrifices and make hard decisions, but at least we’ll be free and independent so we can do what is in the best interests of the people of South Carolina.